UPDATE 1-S.Arabia replaces intelligence head with ex-envoy to US

By Angus McDowall

LONDON, July 19 (Reuters) - Saudi Arabia has replaced
intelligence chief Prince Muqrin bin Abdulaziz with its former
ambassador to the United States, Prince Bandar bin Sultan, the
Saudi Press Agency said on Thursday, citing a royal decree.

Prince Bandar, who was the kingdom's envoy to Washington for
22 years, a period spanning the first Gulf War and the Sep 11
2001 attacks on the United States, takes the portfolio at a time
when Saudi Arabia faces growing instability in its immediate
region.

The world's top oil exporter and birthplace of Islam is
locked in a struggle for Middle East influence with Iran as the
rivals back opposing forces in Bahrain, Iraq, Syria and Lebanon.

"There was a feeling that we needed stronger intelligence
and Bandar has a history of this sort," said Jamal Khashoggi, a
prominent Saudi commentator with ties to the royal family.

"We are witnessing the start of a new Middle East with the
collapse of the (Syrian President Bashar al) Assad regime. We
are worried about Jordan and Lebanon," he said.

Bandar has headed Saudi Arabia's National Security Council
for seven years but has shunned the limelight since leaving his
Washington post in 2005.

"He's been close to that position heading the National
Security Council and is very well aware of the intelligence
apparatus. He's also been involved in Saudi security issues of
the highest order for the last 10 years," said Robert Jordan,
U.S. ambassador to Riyadh from 2001-03.

Jordan, who said he worked closely with Prince Bandar during
that time, and described him as "the ultimate shuttle diplomat",
said the appointment might help strengthen the alliance between
Washington and its closest Arab ally.

Prince Bandar is a son of the late Crown Prince Sultan, who
died last October and had served as defence minister for five
decades.

In the sprawling ruling family, Sultan was one of seven
brothers born to the kingdom's founder by his favourite wife and
known collectively as the Sudairis, who formed the strongest
power bloc in the House of Saud.

The kingdom's new heir apparent, Crown Prince Salman, is
also a Sudairi, as is the new Interior Minister Prince Ahmed.

The royal decree carried by SPA said outgoing intelligence
head Prince Muqrin, the youngest son of the kingdom's founder
Abdulaziz ibn Saud, had been appointed a special envoy and
adviser to King Abdullah, who is 89.

It added that Prince Bandar would retain his role as
secretary general of the National Security Council.